Ohio

Public services, though sometimes invisible, are a crucial element in a thriving economy. To restore critical services and invest in the future, Ohio should boost income-tax rates on its highest earners. Read the Full Report (PDF)

“Ohio’s income tax plays a crucial role in helping the state meet vital needs, and is the only major state tax based on ability to pay. This brief, a resource for the public and policymakers alike, explains why Ohio needs a strong income tax.” Read the Full Report (PDF)

“Poor and middle-income Ohioans would get little out of Gov. John Kasich’s proposed income-tax cut, while the highest-income Ohioans would see reductions in the thousands of dollars. While House Republicans have sidelined the proposal for now, Rep. Ron Amstutz, chair of the Finance and Appropriations Committee, indicated it will be taken up in the future.[1] […]

The recent fiscal downturn forced cash-strapped, tax-averse state lawmakers to seek unconventional revenue-raising alternatives, for additional revenue-raising opportunities outside of the income, sales and property taxes that form the backbone of most state tax systems. One of the most popular alternatives to those major revenue sources is state sponsored gambling. As this policy brief points out, however, gambling revenues are rarely as lucrative, or as long-lasting, as supporters claim.

Low-wage workers often face a dual challenge as they struggle to make ends meet. In many instances, the wages they earn are insufficient to encourage additional hours of work or long-term attachment to the labor force. At the same time, most state and local tax systems impose greater responsibilities on poor families than on wealthy ones, making it even harder for low-wage workers to move above the poverty line and achieve meaningful economic security. The Earned Income Tax Credit (EITC) is designed to help low-wage workers meet both those challenges. This policy brief explains how the credit works at the…

The property tax is the oldest major revenue source for state and local governments. At the beginning of the twentieth century, property taxes represented more than eighty percent of state and local tax revenue. While this share has diminished over time as states have introduced sales and income taxes, the property tax remains an important mechanism for funding education and other local services. This policy brief discusses why property is taxed and how property taxes are calculated.

States currently face a number of fiscal challenges, ranging from unresolved structural deficit, to underlying flaws in their existing tax systems, to the demands posed by ambitious initiatives such as improved access to health care. In response, some policymakers are casting about for new alternatives for generating revenue that do not seem to require visible or difficult changes in law. One such alternative that has gained in popularity in the past few years is a broad-based gross receipts tax.